Erik Wirz in an Interview with HR Today by: Corinne Päper
The revised Swiss Stock Corporation Act requires listed companies to have at least 30% women on their boards.
1. Are Swiss companies prepared?
In recent years we have seen a general trend in the desired direction, but we still see many companies struggling with implementation. The composition of the board of directors can be based on various aspects, and these aspects drive the selection of board members. When, in addition to the traditional aspects of reputation, market access, credibility/trust, industry knowledge, other factors influence the selection criteria, there is usually a reshuffle of the board.
2. What needs to be done?
Rethinking board composition should be seen as an opportunity. The external perception of a board cannot be reduced to how many men or women are on it. To take just one aspect, employer branding also starts at board level. In today's transparent employee world, the attractiveness of a company as a potential employer is defined at board level. This means that if a company's culture only extends to top management and is not reflected in the boardroom, the credibility of a strategy and a communicated culture can be negatively affected. Change should be top-down and bottom-up, otherwise credibility suffers.
3. What is society's responsibility?
It starts at school. We see that stereotypes are still perpetuated in schools, including the idea that girls with high potential are less likely to be identified and supported. If we analyse the percentage of girls who are accelerated (skipped grades) or receive targeted support in pull-out programmes compared to boys, we can see the basis of the effect we later observe in their choice of studies. In Switzerland, we see a high density of women in C-level roles in HR, marketing, PR, compliance and legal, but the proportion of women in other roles is very low. A change in schools, the identification of female talent, combined with family-friendly working models and a general rethink of working hours for C-level roles, will lead to a greater number of qualified women for board positions.
4. Why are the same people always selected for board positions?
We call this effect the selection of the obvious, the safe choice. If we choose someone who is already on the board of several well-known companies, no one will question the choice. Potentially, or supposedly, this also opens up better access to what is at the heart of the important selection criteria. If other aspects are also taken into account in the selection process, heterogeneity can occur not only in terms of gender, but also as a possible interdisciplinary source of new strategic input.
5. Risks of power concentration, lack of governance?
The selection of so-called multi-board members is often based on the criteria mentioned above. In many cases, this certainly has the desired effect. However, it can also lead to uniformity of opinion and stifle innovation, as the same interests tend to be represented.
6. Wouldn't you like to have younger board members?
A mix of ages brings advantages and new impulses. Interests and perspectives tend to be different, enriching the exchange. It's important, however, that the quality of the selection is not compromised by rigid guidelines; this would be counterproductive.
7. How does one become a board member?
Many candidates approach us; they want to take on board mandates now. Appointment to a board should follow a clear objective that can be derived from the company's strategy and the current composition of the board. The added value of a person seeking election to a board is therefore defined by a combination of personal and professional aspects.
8. What is the ideal board member profile?
Someone who wishes to become a board member should be able to bring relevant added value to the board in the area in question. This is often achieved through a track record of success in an industry, a C-level track record and strong emotional intelligence combined with potential for further development.
9. How is a potential board member identified?
An appropriate CV with relevant achievements, combined with market recognition of those achievements and the relationships that result, are ideal conditions for someone to come on the radar for a board position.
10. What kind of education does a board member need?
A solid education can make it easier, but it is no guarantee. More than ever, what you have achieved and what you are recognised for in the marketplace is important.
11. How can a woman get a board mandate?
Ultimately, for both women and men, it is the network, performance and personality that count. This means that if you have ambition and a goal, a woman today has the ideal conditions to be nominated for a board position.